An alternative to trading forex with your own money through a broker is to trade with a private forex trading company using the money that the company provides itself.
A private forex trading company is a company that assesses a trader’s skills (usually through what is called a trading challenge) and based on the results of that assessment, offers the trader their own capital to work with. The aim of the challenge period (assessment) is for the company to determine whether the trader is actually qualified and able to trade successfully in compliance with the capital management rules laid down by the company.
Profits are usually shared between the forex trader and the company according to certain ratios such as: B. 60%/40% or another mutually agreed ratio.
Advantages of trading through a private trading company:
The company’s strict risk management rules help keep the trader on the right track and avoid the psychological issues that most forex traders suffer from.
It offers a wide range of private trading companies for a trader to choose from.
Some of these companies offer top-notch training tools and materials to support their traders.
Since traders actually only trade on demo accounts, trading conditions and service availability in certain countries are not affected by regulatory restrictions.
Disadvantages of trading through a private trading company:
Clear Conflict of Interest – The goal of a private trading company is usually to get you as many fees as possible.
Minimum trade size and profit requirements, as well as a short maximum hold period and news trading restrictions, drive the use of certain short-term trading styles.
The best companies and their advantages:
2. The 5%
What distinguishes FTMO:
Challenge: 2 holding periods – 30 days + 60 days, minimum 10 trading days
Standard mode: maximum daily loss of 5% and 10% of total loss, profit target of 10% in the first period (5% in the second period), fee of 155 euros.
Venture mode: maximum daily loss of 10% and 20% of total loss, profit target of 20% in the first period (10% in the second period), fee of €250.
Reimbursement of fees for the first participation in profits.
Financing conditions: Maximum daily loss 10%
News trading: only allowed on swing accounts.
Credit sizes: $10,000 / $25,000 / $50,000 / $100,000 / $250,000 (not available in Adventure mode)
Account currencies: USD, GBP, EUR, CZK, CAD, AUD, CHF
Yield: 80% / 20% with possibility of expansion to 90% / 10%
Leverage 1:100 (1:30 for swing accounts)
Trading platforms: MetaTrader 4, MetaTrader 5 cTrader, trading applications.
Trial period: yes
Payment Options: Skrill, Credit/Debit Card
What distinguishes the 5%:
Two starting balances: $25,000 (€285 fee) or $50,000 (€550 fee)
The evaluation process continues until the completion of 100 trading positions
Funding Requirements: Requirement of 30+ successful trades, Power Factor +2 (Net Profit % / Max Relative Drawdown %).
Platform: MT5 (clearing mode)
Funding Conditions: Balance $25,000/$50,000, Profit Availability after 50 trades, Mandatory Stop Level 10%, Profit Split Ratio 100%/0%, Power Factor Condition +2, 120% of fee refunded when Power Factor reaches 3.
Account Currencies: US Dollars
Trading instruments: forex, gold and silver, indices
Commission: $4/per full ticket
Trading platforms: MetaTrader 5
Free Trial Period: No
What distinguishes Traderseed:
Unlike other private forex trading companies, private forex trading works with mehr-level challenge programs.
Tier 1 payments: $100, $200, $300.
Second stage payments: $300, $600, $900.
Third level payments: $600, $1,200, $1,800.
Fourth level payments: $1,000, $2,000, $3,000.
Account Currencies: US Dollars
Trading instruments: forex, commodities, indices, cryptocurrencies.
Commission: $7/per full ticket
Trading platforms: MetaTrader 4
Free Trial Period: No
Payment Options: Bank Transfer, Credit/Debit Cards, PayPal, Cryptocurrency
Other features: Allows rollover and holding of positions over the weekend Accepts use of all Expert Advisors and copy trade tools Allows news trading Free challenge continues at the same level if account balance changes positively.
What distinguishes T4TCapital:
Weekly loss limit: 2%
Maximum drawdown: 4%
Reset Fee: $75, $145, or $195.
Six entry levels to access $1,000,000 trading account balance:
Stage 1: $25,000
Stage 2: $50,000
Stage 3: $100,000
Stage 4: $250,000
Stage 5: $500,000
Stage 6: $750,000
Profit target 10% for each level and the same conditions apply during the practical evaluation phase.
Further requirements for expansion: At least 45% success rate, at least 50% successful trading days, at least 65% win/loss ratio, at least Sharpe ratio of 1, trading with at least 50 lots, minimum trading period of 3 months.
Forex Trading Tools, Commodities, Indices, CFDs.
Account Currency: US Dollars
Response rate: profit split ratio 80%/20% when more than 20% profit, 70%/30% when 10%-20% profit, 60%/40% when 5-10% profit.
Trading platform: MetaTrader 4
Free Trial: No
Payment options: PayPal
What sets SurgeTrader apart:
SurgeTrader offers very simple procedures for traders who want to get funding. All you have to do is select a package from the six available packages, pass the assessment process (called Audition) and then continue trading with the selected package’s opening balance in a funded account. There is no minimum time or trading requirements, only maximum loss and drawdown requirements apply.
The profit target for all packages is 10%, the maximum daily loss is 4% and the maximum drawdown is 5%. The only difference is the fee and the opening balance.
Beginner: $25,000 – $250 fee
Average: $50,000 – $400 fee
Professional: Fee from $100,000 to $700
Advanced: $250,000 – $1,800 fee
Expert: $500,000 – $3,500 fee
Leader: $1,000,000 – $6,500 fee
A stop-loss order is required for all trades.
Trading is not allowed on weekends.